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Could AI be a speculative bubble?
Thanks for asking.
Are we in a phase where investors as a whole are overexcited about AI?
My opinion is yes.
You might be surprised to find out that those words came from OpenAI CEO, Sam Altman, talking to The Verge in August 2025.
He was voicing concerns shared by many that artificial intelligence could be heading towards a speculative bubble which eventually bursts.
In economic terms, it refers to a situation in which the price of an asset becomes heavily overvalued.
An asset could be anything from company shares and property to cryptocurrencies.
Essentially, a surge of enthusiasm drives investors to buy the asset in large numbers, convinced it's going to deliver huge returns.
As demand grows, prices rise even further, making the asset seem even more attractive.
But eventually, reality catches up.
Investors begin to realize the asset isn't actually worth as much as they thought.
Confidence fades and many rush to sell.
When everyone sells at once prices collapse leading to what's commonly known as a crash.
An obvious comparison, and one that was made by Ortman in his interview with The Verge, is the dot-com bubble of the late 1990s and early 2000s.
Back in the 90s, the internet was still in its infancy.
Startups with names ending in com were springing up everywhere and attracting significant investment as the online world was seen as the future.
Of course, that wasn't entirely wrong.
But by March 2000, doubts began to set in.
Investors started questioning the profitability of many of these companies, realizing they'd overestimated their potential, and began selling en masse.
The Nasdaq is the US stock exchange focused on tech firms, and within just two years it had lost 77 of its value.
Well, it's pretty hard to say for certain.
Some observers have rightly pointed out that you can only ever identify a bubble as being one once it's already burst.
But there have certainly been a fair number of experts raising concerns.
In its November 2024 financial stability review, the European Central Bank highlighted the risk of a bubble in AI-related asset prices.
And Torsten Slocke, chief economist at Apollo Global Management, one of the world's largest investment funds, went even further, warning that the AI bubble today is bigger than the dot-com bubble of the 1990s.
Despite all these warnings, Sam Altman remains optimistic about OpenAI's future.
He wasn't afraid to tell The Verge about major upcoming investments, saying you should expect OpenAI to spend trillions of dollars on data center construction in the not very distant future.
There you have it.
Now you know whether AI could be a speculative bubble.
In under three minutes, we answer your questions and help you understand the true meaning behind the trends, concepts and acronyms that are making headlines.
Listen along and you will really know for sure.
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